Enjin Coin (ENJ) is showing bullish signs just above a crucial support area. This could lead to an eventual breakout.
ENJ has been falling since hitting an all-time high of $4.84 on November 25. So far, it has fallen by 48%.
On Dec 4, the token bounced at the $2.25 horizontal support area (green circle). This created a long lower wick, which is considered a sign of buying pressure. The bounce served to validate both the $2.25 area and the middle of an ascending parallel channel, inside with ENJ previously traded.
So this is a crucial area of support. A breakdown below could indicate that the trend is bearish.
Future movement
Cryptocurrency trader @TradingTank tweeted an ENJ chart, stating that the token is likely to increase towards $3.2.
Technical indicators on the daily time frame are showing bullish signs. This is most noticeable by the considerable bullish divergence (green line) that has developed in both the RSI and the MACD. This is a sign that often precedes bullish trend reversals.
However, an RSI movement above 50 and a MACD movement into positive territory would be required in order to confirm the trend reversal.
If a breakout occurs, the nearest resistance zone would be at $3.35. This is a horizontal resistance zone and the 0.5 Fib Retracement resistance level.
ENJ/BTC
The ENJ/BTC chart is decisively bullish. The token has broken out above the 5200 satoshi area, which had previously acted as the all-time high resistance.
Currently, it is validating this area as support (green icon). This would allow for upward movement to a new all-time high and price discovery.
If one occurs, the closest resistance area would be at 9600 satoshis, created by the 1.61 external Fib retracement level when measuring the most recent drop.
